UP EPF Reimbursement Scheme: ₹1 Cr a Year for IT/ITeS Units

The UP EPF Reimbursement Scheme is a subsidy from the Government of Uttar Pradesh that pays back the Employees' Provident Fund contributions an IT or ITeS unit makes for staff belonging to specific social categories. It operates as an incentive under the IT and ITeS Policy of Uttar Pradesh 2022.

The scheme is designed to draw fresh investment and formal jobs into the state's technology sector. Only new units that have committed a minimum Fixed Capital Investment of ₹2 Crores qualify, and the reimbursement applies to Women, Scheduled Caste, Scheduled Tribe, Transgender and Divyangjan employees who are domiciled in Uttar Pradesh.

The refund covers the whole EPF amount paid, subject to two ceilings: ₹2,000 per eligible employee each month and ₹1 Crore per unit in a year. A unit can draw the incentive for five years.

The money follows payroll rather than arriving upfront. Each claimed employee must have completed at least one continuous year of service after the unit began commercial operations, which ties the support to lasting, formal employment instead of short-term hiring.

Applications are accepted on a rolling basis, so there is no single window a founder has to race against.

• 100% reimbursement of EPF contributions paid for eligible employees
• Capped at ₹2,000 per employee per month
• Maximum ₹1 Crore per annum for a single unit
• Benefit runs for 5 years
• Covers Women, SC, ST, Transgender and Divyangjan employees domiciled in UP
• Open to new IT/ITeS units with at least ₹2 Crores of Fixed Capital Investment

Eligible units

• IT and ITeS units operating in Uttar Pradesh.
• New units with a minimum Fixed Capital Investment of ₹2 Crores.

Eligible employees

• Women, Scheduled Caste (SC), Scheduled Tribe (ST), Transgender and Divyangjan (persons with disabilities) employees.
• Each employee must be domiciled in Uttar Pradesh.
• Each employee must have served continuously for at least one year after the unit commenced commercial operations.

Limits that define the claim

• Up to ₹2,000 per eligible employee per month.
• Up to ₹1 Crore per unit per annum, available for a maximum of 5 years.

Registration requirements

The policy document does not explicitly require DPIIT Startup India recognition or MSME Udyam registration for this incentive. Refer to the full policy for general compliance conditions.

UP EPF Reimbursement Scheme: ₹1 Cr a Year for IT/ITeS Units is open to startups at any stage. It is open to startups registered anywhere in India.

UP EPF Reimbursement Scheme: ₹1 Cr a Year for IT/ITeS Units accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Full reimbursement of EPF contributions

The scheme refunds 100% of the EPF amount paid for every eligible employee, effectively taking the provident fund cost of hiring from the targeted categories off the unit's books.

Caps on the claim

• ₹2,000 per employee per month — the ceiling for any single eligible employee.
• ₹1 Crore per annum per unit — the overall annual limit for one unit.

Duration of support

The benefit is available for 5 years, which lets a unit plan hiring around these categories with a predictable cost structure.

Cash, not equity

The assistance is a reimbursement paid to the IT/ITeS unit, so the support does not dilute the founders or bring an investor onto the cap table.

UP EPF Reimbursement Scheme: ₹1 Cr a Year for IT/ITeS Units is offered by Government of Uttar Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

Applications are reviewed by a committee or designated authority within the Government of Uttar Pradesh's IT & Electronics Department or Invest UP.

The review is a documentary check against the conditions set out in the IT and ITeS Policy of Uttar Pradesh 2022. Verifying officers examine the unit's Fixed Capital Investment figure, the category and Uttar Pradesh domicile of every employee claimed for, and the evidence that those employees have been in continuous service for the required period.

Compliance with the policy's terms — continued operations and EPF contributions for the eligible employees — is also assessed before a reimbursement is approved.

Once verification is complete and approval granted, the reimbursement is credited directly to the eligible IT/ITeS unit's bank account.

Before you apply to UP EPF Reimbursement Scheme: ₹1 Cr a Year for IT/ITeS Units, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

UP EPF Reimbursement Scheme: ₹1 Cr a Year for IT/ITeS Units is best suited for startups in India seeking non-dilutive funding of ₹1Cr. If that describes your startup, review the eligibility criteria above before applying.